Are You Covered for Injuries Sustained in a Ridesharing Crash?

 Posted on December 00, 0000 in Car Accidents

More and more people are turning to ridesharing companies – such as Uber and Lyft – instead of taxicab services, mainly because the ridesharing fees are less expensive than taxis and wait-times are often much shorter. As cab companies continue to feel the economic pinch of the competition, they have become more aggressive in campaigning to convince commuters why they should avoid ridesharing companies, even to the point of presenting ridesharing as being no safer than hitchhiking.

One of the alleged problems that taxicab organizations point out is that if a person is injured in a ridesharing car crash, there is a good possibility that the driver will not have enough auto insurance to pay for the victim’s medical bills, loss of wages, and any pain and suffering. But is that statement really accurate?

Limited Private Insurance

Most ridesharing drivers likely only carry personal automobile insurance, not commercial automobile insurance. The majority of insurance companies will not cover injuries sustained in an auto accident if the vehicle was being used “for profit” at the time of the accident. For example, if an Uber driver is in a vehicle accident and the passenger is injured, the Uber driver’s insurance could deny the victim’s claim for injuries because the vehicle was being used for business and not pleasure at the time of the crash.

Liability Coverage

However, the taxicab industry is leaving out another piece of information in these campaigns – and that is the ridesharing companies have their own liability insurance which will cover accident victim claims if the driver’s policy rejects that claim. Both Uber and Lyft will cover up to $1 million in damages. The insurance requirement for taxicab companies is typically between $250,000 to $500,000, much less than the amount ridesharing companies have available for liability.

One million dollars is also much more than even the required amount of personal auto insurance in the state of Illinois. The state minimum amount is $20,000/$40,000/$15,000. This means in the event of an accident, the limits for bodily injury is $20,000 per person, with a total of $40,000 maximum per accident; and up to $15,000 in property damage. So even if a ridesharing driver’s auto insurance did cover the accident claim, if the victim’s cost exceeded those limits, they could also file a claim with the ridesharing company itself.

The companies will also provide uninsured motorist coverage if a passenger is injured in a ridesharing accident caused by another driver (not the ridesharing driver) if that driver is uninsured.

If you have been injured in a taxi or ridesharing crash, contact an experienced Orland Park personal injury attorney immediately to find out what legal recourse you have for pain and loss caused by your injuries.

Sources:

http://resources1.news.com.au/images/2015/08/09/1227476/478929-e72c61f0-3e29-11e5-b3df-81490740049a.jpg

http://drivinglaws.aaa.com/tag/liability-laws/

http://www.huffingtonpost.com/christian-denmon/ride-sharing-vs-tradition_b_5273964.html